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First Steps to Dealing with Repossession
With the recent changes in house prices and the economy, many people have been faced with the possibility of repossession in the last few years due to being unable to keep up repayments on their mortgage. With the rising cost of energy bills and many people struggling with increased mortgage payments, it has resorted to many homeowners falling behind with their mortgage payments. If you find yourself in this position, the mortgage companies will try and come to alternative arrangements before resorting to repossession but this doesn’t make the situation any easier as it can be incredibly stressful and cause many problems in other aspects of your life.
The most important thing is to communicate with your mortgage lender as soon as you experience any problems financially. Speaking to them early and making them aware of your situation can help to avoid the possibility of losing your home, by reaching a payment agreement. Many things can lead to financial problems other than house prices or changes in the economy such as a relationship breakdown or loss of a job, which tend to be the most common causes of financial problems leading to repossession. When things change suddenly it can mean that what was once manageable suddenly becomes unaffordable.
When anyone takes out their first mortgage, they tend to opt with a fixed rate deal for a limited amount of time. This can provide security for a short time, but once this has elapsed you can find yourself faced with a large rise in the monthly mortgage payment, particularly if the base rate increases. Currently however, this isn’t a problem as Standard Variable Rates have seen a continuous reduction due to the drop in the Bank of England base rate.
There are many ways to try and avoid repossession or at least avoid the many negative consequences of repossession, by opting to remortgage or even consider a quick house sale which can allow you to sell your home quickly and possibly downsize to save money. You can speak to your bank or mortgage lender about deals on remortgaging or other options that may be available to you. You will be expected to provide financial details in order to help negotiate repayments. If you cannot come to an agreement with your mortgage provider or they refuse any offers you have put forward, you will be in a much better position in court as long as you have evidence to show you have communicated effectively and done everything you can to resolves the situation.
It is also important to get professional advice, and there are lots of companies including Citizens Advice or National Debt line that offer free information and advice for anyone struggling financially or faced with losing their home, however you can also speak to a solicitor who can help to work out a repayment plan or settlement as well as help negotiate with your bank or mortgage provider, however you will need to consider the legal fees involved with instructing a solicitor to help.
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